New Mexico (NM) auto insurance quotes
Investing in auto insurance is crucial for drivers of all ages to protect themselves and their vehicle.
With a population topping 2.1 million, New Mexico's 121,365 square miles make it the fifth largest state in terms of physical size. The state is geographically diverse, with the Rocky Mountains, Great Plains and intermountain plateau providing a variety of climate types across four seasons. These elements, which are attractive and endearing to residents, can also be deadly on the roads. In 2022, there were 467 fatal accidents on the roads of New Mexico.
Severe weather in New Mexico can result in expensive automobile damage. The state is prone to tornadoes, with an average of 10 touching down per year on the eastern plains. Severe hail is very common, with an average of 168 annual incidents of hail penny-sized or larger. New Mexico also sees an average of 70 severe thunderstorms with accompanying high winds each year, and flash floods occur frequently in the summer monsoon season. These weather issues can wreak havoc on automobiles, causing direct damage as well as impacting traffic congestion and creating damage to the roads themselves.
State-owned roads and bridges in New Mexico are in a state of deterioration due to a lack of funding for required maintenance. While the state has stepped up investment in infrastructure over the last three years, more funding is needed to restore the roadways to a level that is deemed safe for drivers. In the meantime, residents should ensure they have adequate levels of New Mexico auto insurance to cover any damages they may sustain on the hazardous roads.
Drivers in New Mexico are required to have a specific level of liability car insurance coverage for their vehicles. The minimum requirements for the state are as follows:
The average annual cost of New Mexico auto insurance is approximately $1,395, which is below slightly below the United States national average annual cost of $1,445.
New Mexico car insurance quotes will vary from person to person due to unique individual characteristics that impact their calculated rates. New Mexico Car Insurance companies include a variety of factors in determining the level of risk associated with each insurance application and utilize complex algorithms to determine premiums based on that risk. The following factors are the major determinants of New Mexico auto insurance quotes.
The type of vehicle you drive has a big impact on your New Mexico car insurance rate. New cars are typically more expensive to insure because the cost of repairing or replacing them is higher. Sports cars are generally more expensive than family cars because they are statistically more likely to be involved in a serious accident. Other vehicle information considered in setting rates includes:
The insurance industry utilizes demographic data to help set policy rates.
Annual mileage is considered when setting rates. Those with long commutes or a history of high-mileage driving are riskier than those who don't drive as much, so they typically pay more. Drivers with a clean record receive better rates and usually qualify for a safe driver discount, which can help save money. Accidents and moving violations (including speeding tickets and DUI citations) can raise your rates by 30% or even more. Insurers also look at your claims history when setting premiums. Three claims in a three-year period are considered a higher insurance risk, resulting in increased rates or even a policy non-renewal.
Vehicle owners in New Mexico are only required to obtain liability coverage, but there are additional coverage options to consider in order to protect your vehicle and passengers.
This type of coverage is required for vehicles that are leased or financed. It pays for repairs or replacement of your vehicle following an accident with another vehicle or structure, regardless of who is at fault.
Comprehensive Coverage is also mandatory for leased or financed vehicles. This coverage pays for damage to your vehicle caused by an event other than a collision, such as a flood, fire, theft or vandalism.
New Mexico law requires that every car insurance company offer this coverage to their auto insurance clients for liability limits of $25,000 per person, $50,000 per accident and $10,000 for property damage. This type of New Mexico auto insurance covers medical bills, lost wages, car damage, pain and suffering, and applicable funeral costs for you and your passengers if you are involved in an accident caused by an uninsured or underinsured driver.
This information is intended for general informational purposes only and is not intended to constitute legal advice.
